But that ultimatum was softened by Microsoft's concession that for a few select enterprise and government users worldwide, it would continue to support the dying platform, IF they paid massive fees.

Some have already committed to that offer. The UK's government offered up £5.5M ($9.1M USD) in British taxpayer money (on top of existing bulk enterprise licensing fees) to provide one additional year of support on Windows XP. It is estimated that the deal will cover a couple million machines at UK government agencies. The UK government claims £20M ($33.2M USD) in taxpayer money will be saved by a more gradual transition away from the aging platform.

Regardless of how taxpayers and tech observers feel about these deals, one thing's for sure -- they're a win-win for Microsoft. If users upgrade to Windows 7 or Windows 8 Microsoft will score licensing fees. If they don't upgrade they will have to pay a quickly escalating ladder of premium fees, boosting Microsoft's profits.

Estimates of Windows XP's market share vary wildly and are skewed by certain segments that have seen higher upgrade rates -- or alternatively slower progression.

Kurtis Johnson, an "ATM expert" at U.S. ATM-maker TritontellsCNN Money:

This isn't a Y2K thing, where we're expecting the financial system to shut down. But it's fairly serious.

He argues that the high rate of ATM holdouts may leave customers vulnerable if hackers use malware to attack the machines. The financial service sector has been slower than most to upgrade, not necessarily because it dislikes Windows 7 or Windows 8. Quite to the contrary, many have expressed enthusiasm for these platforms. However, they simply were unable to justify the costs, as it can cost between $1,000-3,500 USD to upgrade an ATM given the necessary modifications to the hardware and software and the expert support needed.

ATM makers have until 2016, or in some cases 2019, to get their machines off Windows XP.
[Image Source: funnpoint]

The "problem" of Windows XP on ATMs may be somewhat overstated, as most run Windows XP Embedded, a product which Microsoft plans to provide ongoing support for until 2016. Additionally, some SKUs of Windows XP Embedded will receive support all the way until 2019, as they were released later. Hence in the banking sector Microsoft understands the difficulties upgrading and won't be pulling the plug too soon, although there may be some odd exceptions.

The shuttering of support is most dangerous for individual consumers and small businesses clinging to Windows XP. Despite media coverage a significant percentage of both groups don't even realize they're running a dead platform and the danger they may be subjecting themselves and/or their business to, by not upgrading.